South African Football Association

South African Football Association ANNUAL FINANCIAL REPORT incorporating GROUP ANNUAL FINANCIAL STATEMENTS and ASSOCIATION ANNUAL FINANCIAL STATEMENTS for the year ended 30 June 2020 FOR COSAFA CHAMPIONS 2017, 2018, 2019, and 2020! COME SHOW YOUR L VE South African Football Association Annual Financial Report for the year ended 30 June 2020 Administration Reports: Chief Executive Officer 7 Chief Financial Officer 9 Charts & Graphs 10 – 11 National Executive Committee’s Responsibility Statement12 National Executive Committee’s Statement on Corporate Governance 13 Composition of the National Executive Committee 14 Report of the National Executive Committee 15 – 18 Independent Auditor’s Report19 – 23 Statement of Profit or Loss and Other Comprehensive Income 24 Statement of Financial Position 25 Statement of Changes in Equity 26 Statement of Cash Flows 27 CONTENTS Summary of Significant Accounting Policies 28 – 36 Notes to the Group and Association Financial Statements 39 – 62 The following supplementary information does not form part of the Group Financial Statements and Association Financial Statements and is unaudited: Detailed Income Statement 63 Banyana Banyana won the 2020 COSAFA Championship for the fourth year in a row having won their group matches without conceding a goal. They beat Angola 2-0, eSwatini 5-0 and Comoros 7-0 to reach the semis. They then beat Malawi 6-2 in the penultimate match before edging Botswana 2-1 in the final. Coach Desiree Ellis did not bring any of the overseas stars due to Covid-19 but instead assembled a locally-based squad that comprised five members of the Under 20 team. Sibulele Holweni finished as the Top Goalscorer while Hildah Magaia was awarded the Player of the Tournament accolade. This 2020 COSAFA tournament commenced on 3 November 2020 making it the first football tournament to be staged in the African continent since the coronavirus outbreak. 3 FOR MEN’S REGIONAL LEAGUE COME SHOW YOUR L VE The goals of the South African Football Association leadership have been defined and mapped out in a plan called Vision 2022. Vision 2022 is a fundamental rebuilding of the structures of SAFA at all levels to create the conditions that will bring about the sustained international success of our National Teams. We have set our sights on a long-term development plan to achieve the goal of always being in the top 3 of the African rankings, and in the top 20 of the World rankings. 10% of the South African population must play football. Therefore, we need to redouble our efforts to: Launch a vibrant schools’ football programme which includes girls; Strengthen women’s football significantly. VISION 2022 IN A NUTSHELL: Technical Performance Financial Stability Commercial Viability Sound Governance World-Class Administration Major Player in World Football Positive Image STATEMENT VISION 2022 Gender Equality Gauteng Province were crowned the 2019 SAFA / SAB League U21 National Champions after beating Western Cape 2-1 in the final which took place at North West University in Mahikeng on 03 August 2019. Bongani Maseko (Gauteng) was named Coach of the Tournament, Thabang Tsotetsi (Western Cape) was named Player of the Tournament, Siyabonga Mthombeni from Mpumalanga was named Top Goalscorer of the Tournament and Goalkeeper of the Tournament was Bongani Guguleni from Mpumalanga. Referee of the Tournament was Nkosi Joseph from North West. The 2020 Men’s Re- gional Leagues were not played to finish due to the Covid-19 pandemic and therefore the Provincial and National Play-offs could not take place. 5 Administration Reports Advocate Tebogo Motlanthe Chief Executive Officer In the 2018/2019 financial year we reported a loss of R75.9 million and building on our cost cutting measures we have managed to turn things around. We continued from the previous year by doing things differently and by reducing the operational costs and as such, continued to benefit the Association greatly during this financial year. We further had to deal with the challenges brought by the COVID-19 pandemic which caused all football activities to be halted for a time. The SAFA Members have contributed hugely to the turnaround on the finances and we are grateful for their gesture and we thank them for continuing to put the interests of the Association first. Their selfless attitude has greatly assisted the recovery plan. Recognizing that the operations were impacted by the pandemic, we took a decision to introduce a leaner organogram and to take more tasks to our Members. We believe that this will not only be a cost saving exercise, but it will also go a long way in empowering our Members and directing the resources to where they are needed most. We continue to work on making the National Technical Centre operations efficient to ensure that we maximise the profits. Our National Teams’ expenditure was much less than the prior year’s. This reduction was due to the COVID-19 related national lockdown which resulted in the suspension of all football activities. Irrespective of the suspension of international football in March 2020, the prior year was congested with a number of international tournaments which included the CAF Africa Cup of Nations Egypt 2019, the Cyprus Women’s Cup and the FIFA Women’s World Cup France 2019™. During the financial year under review, we launched the inaugural season of the SAFA National Women’s League. This League constituted 12 teams and it was successfully completed. Mamelodi Sundowns Ladies FC were the winners of the inaugural National Women’s League and will campaign in qualifiers to advance to the CAF Women’s Champions League which is a new continental competition scheduled for 2021. As a result of engagements with potential new partners, we have managed to secure a sponsorship for match officials and, in this regard, we are grateful to Showmax (MultiChoice) for having come on board. We continue to engage other potential sponsors and with the guidance of the President, Dr Jordaan, we are very hopeful that we will secure new revenues and continue to improve our financial position. We need to show our appreciation and offer great thanks to all of our Sponsors, Suppliers and Partners for their continued support, especially during these difficult times. Their support to this game of billions is highly appreciated. We thank Dr Jordaan as the President for his leadership and guidance; the NEC and various committees for their continued support and efforts which have contributed to the turnaround strategy. It is through the tireless work and guidance of the collective that we have managed to report a surplus this financial year. 2019 – 2020 Annual Financial Report 7 flysaa.com JHB 211453 FLYING OUR BOYS TO GREATER HEIGHTS. SAA, official airline partner of Bafana Bafana. Mr Gronie Hluyo Chief Financial Officer We are reporting a profit of R54.4 million for the financial year ended 30 June 2020. This is a significant turnaround of R130.3 million (Group). Therefore, the financial performance of the Association and Group was excellent despite some global challenges that befell us from March 2020 and these were due to the COVID-19 pandemic. During March 2020, the State President announced a national lockdown due to the COVID-19 pandemic. This, amongst other measures, included the suspension of all football activities in the country. The suspension of football activities posed a major challenge with some of our sponsors. The nature of our sponsorship relationships is that we must deliver football activities in return for funding. Consequently, some sponsors reduced their funding. However, our financial turnaround was achieved mainly due to the following: • As a result of the national lockdown, our activities for the year were reduced. This resulted in a reduction in activities costs. All our National Teams’ costs reduced drastically and these included: – Men’s Senior National Team which participated at the Africa Cup of Nations in the prior financial year. – Women’s Senior National Team which participated at the 2018 Africa Women’s Cup of Nations Ghana, 2019 Cyprus Cup and FIFA World Cup Women’s France 2019™. All our competitions, which included league matches and national playoffs and championships, were also suspended in March 2020; therefore, the competition costs were also reduced. • Restructuring of the balance sheet involved reviewing all our liabilities and ensuring that we only retain those that will result in future cash flow outflows. This exercise resulted in the writing off of, among others, Regional Grants. • Massive financial support that we received from FIFA and CAF in the form of COVID-19 Relief Grants. During the year under review we also managed to reduce the net current liabilities ratio. In the prior year the current liabilities exceeded current assets by R171.2 million. However, we have managed to reduce this to R95.8 million. We are continuously working on improving this ratio so that our cash flow situation can also improve. The challenges posed by COVID-19 will continue to be a threat on our revenue streams for the forthcoming financial year. We are, however, working on a number of mitigating strategies for us to minimise the adverse impact on our financial position. I will conclude by thanking the Finance & Procurement Committee and the Audit & Risk Committee for their continued guidance. 2019 – 2020 Annual Financial Report 9 Charts & Graphs ASSETS Non Current Assets 110 Current Assets 44 LIABILITIES AND RESERVES Non Current Liabilities 14 Current Liabilities 140 Reserves 0 ASSETS Non Current Assets 110 Current Assets 43 LIABILITIES

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